Two U.S. budget airlines are planning to join forces.
Allegiant Air on Sunday announced plans to acquire rival Sun Country Airlines in a deal valued at about $1.5 billion.
The merger will bring together two ultra-low-cost airlines focused on leisure travel: Allegiant is known for flying passengers from underserved cities to resort destinations, while Sun Country does the same thing – flying primarily from Minneapolis-St. Paul International Airport (MSP).
The deal requires regulatory approval from the Trump administration, so travelers booked for flights in the coming weeks (and months) shouldn’t see any immediate changes.
Allegiant expects the deal to close in the second half of this year.
In the meantime, bookings and operations for both airlines will continue separately.
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The merger is expected to connect Sun Country’s MSP base to many of Allegiant’s midsize markets, the companies said. It would also give Allegiant access to international destinations in Mexico and the Caribbean that it has long coveted.
Once completed, the combined airline will operate under the Allegiant name and retain its Las Vegas headquarters.
This will mean the end of Sun Country as an independent airline brand – a brand that has existed for 43 years.
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The partnership will create a “leading, more competitive, leisure-focused U.S. airline,” Allegiant said in a statement announcing the news on Sunday.
“Together, our complementary networks will expand our reach to additional vacation destinations, including international locations,” said Allegiant CEO Greg Anderson.
Jude Bricker, President and CEO of Sun Country, added: “We are two customer-focused organizations dedicated to delivering affordable travel experiences without compromising on quality.”
Airline consolidation accelerates
It would be the second merger involving two U.S. airlines in nearly a decade — Sunday’s announcement comes about 16 months after Alaska Airlines completed its acquisition of Hawaiian Airlines.
Budget rivals Frontier Airlines and Spirit Airlines have reportedly relaunched merger talks in recent months as Spirit struggled financially, but no deal has been announced.
Before this latest wave of airline mergers (or apparent merger discussions), the Biden administration successfully blocked JetBlue Airways from forming a Northeastern alliance with American Airlines in 2023 and planned to acquire Spirit Airlines in early 2024.
bottom line
For Allegiant, the acquisition of Sun Country would mean a significant doubling of its aviation business after it sold its Sunseeker resort in Florida in 2025 and pledged to refocus on its core business.
The airline has also announced a slew of new routes in recent months and pledged to overhaul its loyalty program.
The companies plan to discuss the deal during a conference call with investors Monday morning.
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